Ford Announces Plan to Cover Car Payments if Buyer Loses Job

In what must be viewed as rubbing salt in GM's wounds, Ford Motor Co. announced today that it will provide a protection plan for new car buyers. If a new car buyer loses his or her job after purchasing a Ford, the company will take over or forgive the payments for up to one year. The program is designed to help assuage fears among consumers that they might lock into a new car payment only to lose their job and be left in dire straits.

And despite the fact that Ford is the number two auto maker in the United States, the company has yet to petition the government for any financial aid. In contrast, GM and Chrysler have already received tens of billions in taxpayer aid and are seeking more. In addition to the protection plan, Ford is currently offering zero percent financing on many of its models.

Ford is also taking a beating from the current recession, showing sales declines of 48% in February, their lowest level in 27 years. But despite the obvious hit the company is taking, they have somehow managed to remain operational without billions in aid from the government. That seems puzzling, considering that GM was on the verge of collapse nearly 3 months ago. How different can the two business models possibly be that one company is on its death bed, sucking down public resources at an alarming pace, while the other is hitting the same difficult economy and somehow making ends meet on its own.

It is expected that GM is going to offer a similar protection plan in the near future. The federal government has already stated that it will back warranties on GM vehicles.